Foundation Concept : Information System in Business¶
An information system can be any organized combination of people, hardware, softtware, communication networks, data resources, and policies and procedures that stores, retrieves, transforms, and disseminates information in an organization. Information technologies can help all kinds of business improve efficiency and effectiveness of their business processes, managerial decision making, workgroup collaboration, which strengthens their competitive positions in rapidly changing marketplaces. Individuals and businesses depend on contemporary information systems for communication through a mix of physical tools (hardware), instructions and processes for system operation (software), connectivity mediums (networks), and preserved information (data resources).
In its simplest form, a system is a set of interre- lated components, with a clearly defined boundary, working together to achieve a common set of objectives
EXAMPLE OF INFORMATION SYSTEM¶
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The cash register at your favorite fast-food restaurant is part of a large infor- mation system that tracks the products sold, the time of a sale, inventory levels, and the amount of money in the cash drawer; it also contributes to the analysis of product sales in any combination of locations anywhere in the world.
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A paper-based accounting ledger as used before the advent of computer-based accounting systems is an iconic example of an information system. Businesses used this type of system for centuries to record the daily transactions and to keep a record of the balances in their various business and customer accounts. Example
A structure that highlights the key domains of knowledge about information systems essential for business professionals.
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